For Q1, Netflix posted revenue of $706 million, up 43% from a year ago, and ahead of the Street at $703.6 million. Profits were $1.11 a share, ahead of the Street at $1.08. Operating income was $113 million, up 95% from a year ago.

The company added 3.3 million net new domestic subscribers, increasing the total to 22.8 million. That's substantially ahead of the 2.7 million added in Q4, and the 1.7 million added in the year ago quarter. The company also added 800,000 international subscribers, 290,000 of those added in the latest quarter. Overall, the company now has 23.6 million subscribers, up 69% from a year ago, and near the high end of company guidance.

In vivid illustration of the economic advantages of the streaming model, domestic operating margin increased to 16%, from 14.9% in Q4, 13% in Q3 and 11.7% a year ago.

The company bought back $109 million of its common stock in the quarter.

Netflix noted that net adds looking forward get tougher from here, so it isn't likely the company will produce 2x year-over-year gains in coming quarters.

For Q2, the company sees domestic subscribers increasing to a range of 24 million to 24.8 million, with international subs growing to 900,000 to 1.05 million. The company sees revenue for the quarter of $778 million to $798 million (that's $762 million to $778 million domestically, and $16 million to $20 million from international operations), with EPS of 93 cents to $1.15 a share; the Street has been expecting $763 million and $1.19. The company sees operating income domestically of $100 million to $116 million, with an international operating loss of $10 million to $14 million.

The company noted that average subscription price increased sequentially in Q1, as "new subscribers embraced the pure streaming and hybrid plans in roughly equal numbers." But Netflix noted that the trend going forward is likely to revert to a slight sequential decline "as pure streaming becomes a larger part of the overall subscriber mix."